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How did our 2013 Predictions fare?

Mobile Advertising Trends
PREDICTION 1

Smartphone Advertising
will evolve to Smart
Advertising.

DID WE GET IT RIGHT?








Brands have started to focus on Audience targeting &
engagement instead of just targeting by Platform

The Halls „Breathe to Change‟
campaign targeted youth and
leveraged „Click-to-call‟ & IVR to drive
engagement & support for a cause

My E.G. targeted DiGi
subscribers to promote their
motor insurance by offering free
talk time to users as reward

Axe launched an exclusive „Trip
to Space‟ contest through
registration form on mobile and
competition amongst audience

In 2013, we witnessed a fair number of smart & innovative mobile ad campaigns on our
network focused on increasing engagement with the target audience, based on their mobile
usage and behavior, irrespective of the mobile platform they were present on.
Source: Vserv.mobi
PREDICTION 2

Developers will blend InApp purchases with Ads
based revenue in parallel

DID WE GET IT RIGHT?








Advertising & In-App purchases continue to grow as
preferred revenue models in 2013, while developers have
started moving away from Paid Downloads
38 %

2012
2012

Pay per download

Advertising

In-app purchases

25 %

18 %

26 %

2013
2013

19 %

33 %

32 %

34 %

Revenue models adopted by mobile app developers (%)

Freemium

84% of the top 100 highest-grossing apps in Google Play store are free. Popular apps and
games such as Zynga Poker, CSR Racing, Line messaging app have successfully devised a
suitable revenue model using in-app purchases, branded content and in-app advertising.
Source: Developer Economics, App Annie
Note: Percentages will not add up to 100% as developers could select multiple revenue models
PREDICTION 3

Telcos will try to get back
into the Mobile
Advertising space

DID WE GET IT RIGHT?






Many leading Telcos ventured into the rapidly growing
mobile advertising opportunity with strategic partnerships

India

Singapore

Indonesia

UK

Philippines

Aus & NZ

US

EU, LATAM

Indonesia

The mobile advertising opportunity has prompted Telcos to extend partnerships or turn to inhouse development of a mobile advertising platform. Many Telcos have started relying heavily
on partners to gain expertise and build a strong position in the mobile advertising space.
PREDICTION 4

Windows Phone 8
will not stop
Android‟s “mass market”
smartphone momentum

DID WE GET IT RIGHT?








Android continued to gain mass adoption as it
crossed 80% of world‟s smartphone market share
Share of Global Smartphone Sales to End Users by Operating System (%)
Others
BlackBerry
Windows Phone
iOS
Android
1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

Oct‟12
Windows Phone 8 launch

Stringent hardware spec requirements at the launch of Windows Phone 8 limited its mass
adoption. Since the growth in smartphone market is projected to come from emerging countries,
Windows Phone devices are now being made available at the entry level segment as well to
entice masses.
Source: Gartner
PREDICTION 5

Consumer‟s mobile
lifestyle will allow Brands
to converge advertising,
distribution &
transactions!

DID WE GET IT RIGHT?








Mobile is TURBO CHARGING the 4Ps of MARKETING

Product introduction, decision process and actual purchases are happening now at consumer‟s
fingertips. Marketers have started integrating Mobile in the overall media mix facilitating
advertising, distribution and transaction through the same channel. Lines between advertising,
distribution and transactions continue to blur.
Source: Google Play
Author

Dippak Khurana

CEO & Co-Founder, Vserv.mobi
dippak@vserv.mobi

As the CEO and Co-founder of Vserv.mobi,
Dippak plays a central role in today‟s
mobile ecosystem working with Telecom
providers, Mobile Content companies, App
Developers, Publishers and Advertisers. As
an Internet & Mobile industry veteran,
Dippak has successfully played key roles in
making revolutionary introductions in this
space in the last two decades.
Mobile Advertising

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Mobile Advertising

  • 1. How did our 2013 Predictions fare? Mobile Advertising Trends
  • 2. PREDICTION 1 Smartphone Advertising will evolve to Smart Advertising. DID WE GET IT RIGHT?    
  • 3. Brands have started to focus on Audience targeting & engagement instead of just targeting by Platform The Halls „Breathe to Change‟ campaign targeted youth and leveraged „Click-to-call‟ & IVR to drive engagement & support for a cause My E.G. targeted DiGi subscribers to promote their motor insurance by offering free talk time to users as reward Axe launched an exclusive „Trip to Space‟ contest through registration form on mobile and competition amongst audience In 2013, we witnessed a fair number of smart & innovative mobile ad campaigns on our network focused on increasing engagement with the target audience, based on their mobile usage and behavior, irrespective of the mobile platform they were present on. Source: Vserv.mobi
  • 4. PREDICTION 2 Developers will blend InApp purchases with Ads based revenue in parallel DID WE GET IT RIGHT?    
  • 5. Advertising & In-App purchases continue to grow as preferred revenue models in 2013, while developers have started moving away from Paid Downloads 38 % 2012 2012 Pay per download Advertising In-app purchases 25 % 18 % 26 % 2013 2013 19 % 33 % 32 % 34 % Revenue models adopted by mobile app developers (%) Freemium 84% of the top 100 highest-grossing apps in Google Play store are free. Popular apps and games such as Zynga Poker, CSR Racing, Line messaging app have successfully devised a suitable revenue model using in-app purchases, branded content and in-app advertising. Source: Developer Economics, App Annie Note: Percentages will not add up to 100% as developers could select multiple revenue models
  • 6. PREDICTION 3 Telcos will try to get back into the Mobile Advertising space DID WE GET IT RIGHT?   
  • 7. Many leading Telcos ventured into the rapidly growing mobile advertising opportunity with strategic partnerships India Singapore Indonesia UK Philippines Aus & NZ US EU, LATAM Indonesia The mobile advertising opportunity has prompted Telcos to extend partnerships or turn to inhouse development of a mobile advertising platform. Many Telcos have started relying heavily on partners to gain expertise and build a strong position in the mobile advertising space.
  • 8. PREDICTION 4 Windows Phone 8 will not stop Android‟s “mass market” smartphone momentum DID WE GET IT RIGHT?    
  • 9. Android continued to gain mass adoption as it crossed 80% of world‟s smartphone market share Share of Global Smartphone Sales to End Users by Operating System (%) Others BlackBerry Windows Phone iOS Android 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 Oct‟12 Windows Phone 8 launch Stringent hardware spec requirements at the launch of Windows Phone 8 limited its mass adoption. Since the growth in smartphone market is projected to come from emerging countries, Windows Phone devices are now being made available at the entry level segment as well to entice masses. Source: Gartner
  • 10. PREDICTION 5 Consumer‟s mobile lifestyle will allow Brands to converge advertising, distribution & transactions! DID WE GET IT RIGHT?    
  • 11. Mobile is TURBO CHARGING the 4Ps of MARKETING Product introduction, decision process and actual purchases are happening now at consumer‟s fingertips. Marketers have started integrating Mobile in the overall media mix facilitating advertising, distribution and transaction through the same channel. Lines between advertising, distribution and transactions continue to blur. Source: Google Play
  • 12. Author Dippak Khurana CEO & Co-Founder, Vserv.mobi dippak@vserv.mobi As the CEO and Co-founder of Vserv.mobi, Dippak plays a central role in today‟s mobile ecosystem working with Telecom providers, Mobile Content companies, App Developers, Publishers and Advertisers. As an Internet & Mobile industry veteran, Dippak has successfully played key roles in making revolutionary introductions in this space in the last two decades.